Global service sector expansion gathers pace at start of 2018
Staff Writer |
January saw a further improvement in the rate of increase in global services activity.
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Growth accelerated to match the 26-month high registered last October, underpinned by the fastest inflows of new work since July 2015.
The J.P.Morgan Global Services Business Activity Index a composite index produced by J.P.Morgan and IHS Markit in association with ISM and IFP posted 54.1 in January, up from 53.8 in December.
Please note that the annual review of the global PMI weights has been implemented, resulting in minor revisions to the time series back histories from 2013 onwards.
Solid increases in output were registered across the business, consumer and financial services sectors.
The steepest expansion was seen in the latter, with growth hitting a three-month high, followed closely by that recorded at business services firms (albeit slower than in December).
The pace of increase in consumer services activity improved to a 27-month high.
The upturn remained broad-based by nation in January.
Almost all of the countries covered saw business activity rise, with growth strengthening in the euro area (fastest in over a decade), China (68-month high), Japan and India (both three-month highs).
Output growth eased to a nine-month low in the US, 16- month low in the UK and three-month lows in Russia and Australia.
The Brazilian service sector stabilised, halting a three-month sequence of contraction.
The outlook for the world service sector remained positive in January 2018.
Alongside improved inflows of new work, companies reported feeling confident about future performance.
Business optimism rose to a seven-month high, with all of the nations covered forecasting output growth over the coming year.
Employment rose at a solid pace in January.
Moreover, rates of jobs growth during the past half-year have been among the best seen in over a decade.
Staffing levels rose in all of the nations covered except Brazil.
Price pressures increased at the start of 2018.
Rates of inflation in input costs and selling prices accelerated to a six-and-a-half year high and joint-highest since April 2014 respectively.
Rates of increase in both price measures remained stronger in developed nations compared to their emerging market counterparts. ■